Research preview

The recent report that two oil tankers carrying roughly two million barrels each caught fire after striking naval mines in the Strait of Hormuz underscores the fragility of physical markets and the ripple effects on derivative pricing. For quantitative traders, the event is a reminder that execution risk—especially in tight order books—can turn a well‑designed signal into an unexpected loss. This article links the real‑world disruption to a core micro‑structure concept: the behavior of limit orders sitting behind a queue when a market order arrives....